JPMorgan Chase, Wells Fargo and BofA Hit With Negative Ratings Outlook As Moody’s Says US Government Has Weaker Capacity To Support Big Banks

The Daily Hodl ^ | 11/19/23

[EBH]

Ya'll seen this reported anywhere else?

[TheWriterTX]

When this collapse happens, it will make 2008 look like child’s play.

[EBH]

Downgrades happening all around...

Bidonomics ....? This is nuts.

[Leaning Right]

How long before Moody’s executives are raided by the FBI and/or the IRS?
Because it’s obvious. Their minds just aren’t right.

[EEGator]

WWIII will save us…

[EBH]

this trip down is going to be wild...and not wonderful

I was concerned before

Now I am getting really scared.

Everything is not alright

[Wuli]

Most assuredly the federal government has less capacity to intervene with help for the big banks, should they falter, because the federal government has too too much debt problems of its own, with particular thanks to Joe Biden.

[cgbg]

The US government has proven they can have infinite deficits if needed to bail out the big banks.

When you have a Federal Reserve bank in your basement there are no rules.

[EBH]

Reverse Repo Draining Fast! What Happens When It’s Gone?

The Reverse Repo has been quietly injecting money into the bond market since the debt ceiling was suspended in June. There is now just $912B remaining, down from nearly $2.3 trillion just a few months ago. Now the question on everybody’s mind, what happens when it gets to zero? Joe Brown from @HeresyFinancial joins me to talk about what happens next.

https://youtu.be/bTNFLD0w4s4?si=u0XQKBGY4Mkw8ydO

[cgbg]

Excellent Joe Brown video—thanks.

He and I agree—he just explains it better.

;-)

[1Old Pro]

a previous downgrade of U.S. sovereign credit rating,

Don't here the media talking about this aspect of Bidenomics.

[PerConPat]

In a research note released last quarter, Moody's said that US banks were facing “significant risk” of deposit flight due to interest rate and asset-liability management (ALM) risks.

So what?...Why worry? SVB, Signature, First Republic depositors were protected by the likes of the BFTP etc. weren't they?

This is the official position held by the Alfred E. Neuman institute for Fiscal Stupidity.

[CPT Clay]

Rut Roh

[Avalon Memories]

I have a significant amount deposited in one of those banks (decline to say which), and I don’t know how to withdraw it because of the disgusting withdrawal limit mandated by the government.

[EBH]

I agree it is a great interview and explanation of why we should be very concerned.

[EBH]

See post #8

[cgbg]

While I agree that the FDIC will bail out depositors—even above the 250K limit as we have seen in the past year—there is a risk for bank stock (equity) holders.

That is the basis for the lower rating.

Most banks are technically insolvent if they had to liquidate everything immediately. In fact many have commercial real estate liability alone that substantially exceeds their total equity.

[EVO X]

I take it you are talking about ACH transfers from your bank account to a different bank that you have an account with. Banks are able to set their own transfer out limits. If your money center bank has draconian transfer out limits, write a paper check. Before the financial crisis hit in 08, I was ping ponging money between a money center bank(MCB) and my CU for better CD rates. Then out of the blue the MCB put a $2K limit on transfers out about 6 months before the financial crisis hit. That ticked me off. I had to drive 100 miles to the nearest MCB branch office to close out my account. I wasn’t in any danger of exceeding the FDIC insurance limit. It just smelled bad, and I was right..

[GOPJ]

But, but, but... Biden does NOT want America first...He wants us last. Only the people who hate our country matter to President Sniffer.

[PerConPat]

Not that the FDIC is an ironclad guarantor of your accounts; but, unless you are a celebrity/silicon valley bigwig etc., hope you are keeping up with the 250k account rules.